Understanding the Potential of UPI as a SWIFT Alternative

The Swift system is a global leader in financial messaging services. However, the emergence of the indigenously developed UPI and its growing international appeal suggest it could potentially replace Swift.

• Japan, among other nations, is seriously considering the adoption of the UPI system to enhance interoperability. There is a growing possibility that UPI could become the standard for cross-border payment systems, replacing the Swift system.
• It's worth noting that digital payment systems like UPI and RuPay are already in use by Indian travelers in countries like Singapore, Nepal, Bhutan, and the United Arab Emirates (UAE).
• Non-resident Indians (NRIs) in 10 countries can make UPI payments using their local phone numbers. These countries include Australia, Canada, UAE, Oman, Qatar, Singapore, Hong Kong, the UK, and the US.
• Currently, India is collaborating with 19 countries, primarily developed countries in Europe, to adopt a system similar to UPI.
• UPI has received a patent in Japan, and the country is also recognizing the Indian digital stack, including UID, for its citizens.
• The Digital India Mission is receiving positive attention in global forums such as G20, SCO ( Shanghai Cooperation Organisation) and G7.

What is the Unified Payment Interface (UPI)?

• UPI is a real-time payment system that facilitates instant transfer of funds between two bank accounts through a single mobile application.
• Some key features of UPI include:
  • Availability of immediate money transfer 24/7.
  • Ability to access different bank accounts through a single mobile application.
  • Increased security with the customer's virtual address for Pull & Push, eliminating the need to enter details like card number, account number, IFSC, etc.
  • Single Click 2 Factor Authentication – This feature is in line with Regulatory guidelines and offers a seamless single-click payment experience.

Learn more about the Unified Payment Interface (UPI) in the linked article.